Broker: Maybank Research Pte Ltd
Date of Report: July 30, 2026
Excerpt from Maybank Research Pte Ltd report.

Report Summary

Stock: CapitaLand Ascott Trust (CLAS SP)
Action: BUY
Target Price: SGD 1.00 (previously SGD 1.05)
Current Price: SGD 0.91

• Key Investment Idea: CLAS remains resilient, delivering a stable 1H DPU of SGD2.53c, flat YoY and at 41.3% of consensus forecasts. Management is committed to stable distributions despite near-term margin pressures and ongoing portfolio rejuvenation.
• Highlights:
  • Operating performance was mixed, with 1H revenue and gross profit down 7% and 11% YoY, respectively, mainly due to portfolio reconstitution, asset enhancement initiatives (AEIs), FX movements, and one-off tax adjustments.
  • On a same-store basis, 1% YoY growth in RevPAU was achieved, but gross profit margin fell to 43.6% from 45.8%.
  • Gearing remains stable at 37.7%, with cost of debt unchanged at 2.8% and continued focus on capital recycling.
  • Recent activities include the acquisition of three Japan rental housing assets at a 4.1% yield and the above-book divestment of The Robertson House in Singapore at a 2.3% exit yield.
  • Redevelopment and AEI projects are expected to contribute from 2027 onwards.
• Implications: The trust offers a steady estimated yield of 6.1% for FY27E and trades below book value, making it attractive for yield-focused investors. Management’s discipline in delivering stable DPUs and executing value-accretive portfolio moves supports the BUY call.

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